CRH CEO Albert Manifold pic: CRH
CRH, the Ireland-headquartered, global building materials group, has reached agreement to sell its Europe Distribution business to private equity funds managed by Blackstone for €1.64 billion.
The Europe Distribution business comprises CRH’s entire General Builders Merchants business in Europe, including its Sanitary Heating and Plumbing business. It supplies building materials to professional builders, specialist contractors and DIY customers through a network of local and regional brands across 6 countries in Western Europe. In 2018 the European Distribution business generated proforma EBITDA of €155 million on proforma sales of €3.7 billion; profit before tax for the year amounted to €124 million and gross assets at year-end amounted to €1.9 billion.
This sale, subject to regulatory authority approval, follows a comprehensive strategic review of the European Distribution business over the last several months which considered all options to maximise value for shareholders. CRH says the move will create a “simpler and more focused business”.
CRH CEO Albert Manifold said: “The transaction demonstrates the continued execution of CRH’s strategy of creating value for our shareholders through active portfolio management, the efficient allocation of capital and creating a simpler and more focused Group going forward. We wish our colleagues in Europe Distribution every success as they enter this new phase of their development.”